EU AI Act Grants European Commission Power to Fine and Restrict U.S. AI Giants Like OpenAI and Google

The EU AI Act now empowers the European Commission to fine U.S. AI giants like OpenAI, Google, and Anthropic up to 15 million euros or 3% of annual turnover, inspect their models, and restrict market access, escalating transatlantic tech tensions as President Trump threatens tariffs in response.

• The European Commission gains sweeping new enforcement powers under the EU AI Act, allowing it to inspect AI models, restrict market access, and fine providers up to 15 million euros or 3% of annual turnover, directly targeting U.S. firms like Anthropic, OpenAI, and Google.
• Tensions between the U.S. and EU are escalating as the bloc pursues tech sovereignty, with President Trump threatening 'substantial' tariffs after Google was hit with a $1 billion fine in July, and the EU now in talks with OpenAI and Anthropic following reported cyberattacks involving their models.
• Legal experts warn that exposure to fines is real and extends beyond substantive violations, noting that non-EU AI providers must appoint an EU-based representative and can be penalized simply for refusing information requests or blocking model evaluations.